GLOBALVECT.NS
Global Vectra Helicorp Ltd
Price:  
267.96 
INR
Volume:  
22,884
India | Energy Equipment & Services

GLOBALVECT.NS WACC - Weighted Average Cost of Capital

The WACC of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 8.9%.

The Cost of Equity of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 15.45%.
The Cost of Debt of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 5.75%.

RangeSelected
Cost of equity13.6% - 17.3%15.45%
Tax rate33.0% - 40.7%36.85%
Cost of debt4.0% - 7.5%5.75%
WACC7.6% - 10.2%8.9%
WACC

GLOBALVECT.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.811.01
Additional risk adjustments0.0%0.5%
Cost of equity13.6%17.3%
Tax rate33.0%40.7%
Debt/Equity ratio
1.231.23
Cost of debt4.0%7.5%
After-tax WACC7.6%10.2%
Selected WACC8.9%

GLOBALVECT.NS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for GLOBALVECT.NS:

cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.